Economics Chapter 1
Terms
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- Economy with government in control
- Command Economy
- Term for temporary situation with more demand than supply
- Shortage
- What is not a characteristic of command economy?
- each factory makes own goals
- An example of physical capital is...
- a factory building
- Free market philosopher who wrote Wealth of Nations...
- Adam Smith
- A lack of people or resources is...
- Scarcity
- Free Enterprise is what kind of economy?
- Market Economy
- Goods of services produced...
- GDP
- What is the role of government in free enterprise?
- companies make own profits
- What is it called when a factory installs a new machine?
- technology
- Incentive to motivate manufacturers...
- Profit
- Chinese economy is what?
- Mixed but more command
- What is the study of economics on the national scale?
- Macro
- Resources used for goods and services are...
- factors of production
- Advantage of free market...
- offers variety of goods and services
- What are the 3 key economic questions?
- -What is going to be produced? -How is it going to be produced? -Who will receive the goods and services?
- Why is some government intervention needed?
- to give us some things not in market
- What agrees with laissez faire economics?
- government funding
- Number 1 alternative given up when choice is made
- Oppertunity
- Type of rural economy...
- Traditional
- Is a mall an example of a public good?
- No
- Why are goods and services scarce?
- because all resources are scarce
- Equipment used by doctors is an example of what?
- Physical Capital
- Function of economic system
- To produce and distribute
- Example of safety net
- Unemployment
- Resources made by humans used to make other things...
- Capital
- Term for alternatives given up when choice is made...
- Tradeoffs
- Individual businesses are an example of what kind of economics?
- Micro
- Centrally planned means...
- government makes decisions
- What is an advantage of the free market?
- it encourages growth
- What is an example of a public good?
- Highway